Shadow ‘Financial Crisis’ from Climate Disasters Costs World $2 Trillion, ICC Report Warns
The rising economic toll of climate-related disasters has reached a staggering $2 trillion globally, a new report by the International Chamber of Commerce (ICC) reveals. Over the past decade, the economic damage from extreme weather events has soared, rivaling the financial toll of the 2008 global financial crisis. Released just as the United Nations Climate Change Conference kicks off in Azerbaijan, the ICC report highlights the need for swift, coordinated policy action to curb greenhouse gas emissions.
From 2014 to 2023, nearly 4,000 extreme weather events across six continents inflicted severe financial costs, disrupting homes, infrastructure, and human productivity worldwide. The report estimates that 1.6 billion people were impacted by climate disasters in this period. The ICC emphasizes that climate change is not a distant threat but an immediate economic issue, with damages from weather-related disasters climbing 83% between 1980-1999 and 2000-2019.
In the most recent years, 2022 and 2023 alone, climate damages reached $451 billion, marking a 19% rise compared to the previous eight-year average. According to ICC Secretary-General John W.H. Denton AO, these figures underline the urgent need for global leaders to respond with decisive action, akin to the response to the 2008 financial crisis.
The report’s release follows the re-election of Donald Trump as U.S. President, who has vowed to reverse various climate regulations. During his previous term, Trump withdrew the U.S. from the Paris Climate Agreement, arguing it imposed excessive economic burdens. This approach contrasts sharply with the ICC’s call for intensified efforts to limit emissions and mitigate climate change’s financial and human impacts.
Meanwhile, recent data from Europe’s Copernicus Climate Change Service suggests that 2024 is likely to become the hottest year on record, underscoring the critical need for immediate action. The ICC report serves as a stark reminder of the costly toll that inaction on climate change will exact on global economies.
